Investors in Skygate Solutions Berhad (KLSE:SKYGATE) have seen stellar returns of 245% over the past three years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. To wit, the Skygate Solutions Berhad( KLSE:SKYGATE ) share price has flown 239% in the last three years. Most would be happy with that.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

See our latest analysis for Skygate Solutions Berhad

While Skygate Solutions Berhad made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Skygate Solutions Berhad actually saw its revenue drop by 28% per year over three years. So we wouldn't have expected the share price to gain 50% per year, but it has. It's a good reminder that expectations about the future, not the past history, always impact share prices.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Skygate Solutions Berhad's earnings, revenue and cash flow .

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Skygate Solutions Berhad's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Skygate Solutions Berhad's TSR of 245% over the last 3 years is better than the share price return.

A Different Perspective

Skygate Solutions Berhad shareholders are down 15% for the year, but the market itself is up 8.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 16%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Skygate Solutions Berhad better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Skygate Solutions Berhad (including 2 which are potentially serious) .